Will Bitcoin’s competitors finally catch up to it? Plus, a crucial safety step that anyone with a Bitcoin wallet should take.
From in’s humble beginnings back in January 2009 to the present day, Bitcoin (BTC) has completely transformed the cryptocurrency world as we know it. BTC has become the de facto standard for cryptocurrencies, inspiring the beginnings of some of the most popular other cryptocurrencies on the market today. There is a good reason as to why Bitcoin has remained on top for so long. It hasn’t been just sheer luck.
Why Bitcoin has been so successful
There are a few different reasons as to why Bitcoin has risen to the top of the game and earned itself a market cap that is estimated at over 1 trillion dollars.
Blockchain technology
One reason why Bitcoin has been a major success is due to the smooth operating blockchain technology that it uses. Blockchain technology works so well that even places departments like public health, retail, and gaming have all adopted it.
Bitcoin halving technology
Furthermore, the secretive creator of bitcoin, Satoshi Nakamoto, created Bitcoin’s blockchain system to be capable of operating without assistance. This led to the eventual halving of Bitcoin, or the splitting of the rewards that miners receive.
This halving event impacted things like the overall supply of Bitcoin, clear down to smaller expenses like the cost of mining. Through this, Nakamoto effectively capped the number of Bitcoin in existence to this day, at 21 million.
Generating demand
Bitcoin halving also significantly slowed down the speeds at which new BTC was being released to the cryptocurrency market. What this did, was pave the way for BTC demand to grow faster than the rate of supply. Which lead to the famous exponential growth of its price.
Making mining more difficult
Bitcoin’s blockchain network was made to make mining difficult by design. This is because when mining is more of a challenge, it’s easier to regulate the supply of BTC as its number of users grew.
Move over Bitcoin…
Bitcoin’s success is no secret, but today there are plenty of other cryptocurrency success stories worth mentioning. And the way things are looking, one day, any one of these successful new digital currencies could possibly take BTC’s place at number one. Here are the top two contenders.
1. Ethereum
Ethereum (ETH) is a decentralised software platform that has the unique capability of supporting and creating smart contracts and dapps or “decentralized apps”. The ETH platform is so secure that it’s capable of running without third-party interference or fraud control.
Like BTC, Ethereum was created with the goal in mind to provide people with a free-to-use, decentralised financial platform, that the whole world has access to. And that’s exactly what is.
The token of Ethereum is called ether, which is specific to only Ethereum and is the driving force behind the platform’s applications.
Ether was launched in 2015 and since then has climbed the ranks to the world’s second-largest cryptocurrency by market cap. Second to only Bitcoin (of course). As of the beginning of this year, ether is 19% of Bitcoin’s market cap.
2. Litecoin
In 2011 the world saw the launch of Litecoin (LTC), by Charlie Lee, an MIT graduate, and previous Google employee, just a few short years after the birth of BTC. Because of this, Litecoin is often to referred to as being the “silver to Bitcoin’s gold.”
The open-source-based global payment network is not managed or controlled by any third-party authorities like BTC. There are a few differences between the two, though. One being that LTC offers users a faster transaction confirmation time, due to its faster block generation rate.
Currently, Litecoin is the sixth-largest digital currency in the world. Its token value is $153.88 and Its market cap is at a whopping 10.1 billion.
Bonus tip: Prepare ahead of time to recover bitcoin wallet
If you have a digital currency wallet with any stores of value inside, it’s wise to consider the possibility that one day, you might just forget or lose your passwords. What would you do?
Cryptocurrency recovery services work to recover digital currencies that are held hostage in inaccessible wallets. Getting locked out of your own wallet might seem like an impossible situation, but with the right brute force service provider, you can recover bitcoin wallet values.
It’s always a good idea to research Bitcoin wallet recovery services ahead of time, in case of emergency.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision.
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